POL Biden may owe up to $500K in back taxes

20Gauge

Has No Life - Lives on TB

President Biden may have improperly avoided paying Medicare taxes before he took office and could owe the IRS up to $500,000, according to a Congressional Research Service report.

"Joe Biden wants to raise taxes by $2.1 trillion while claiming the rich need to pay their ‘fair share.’ But in 2017, multi-millionaire Joe Biden skirted his payroll taxes — the very taxes that fund Medicare and Obamacare," said Rep. Jim Banks, who chairs the conservative Republican Study Committee.

Banks said the report indicated that Biden improperly used "S corporations" while he and first lady Jill Biden raked in over $13 million on speaking fees and book sales in 2017 and 2018, but counted less than $800,000 of it as a salary that could be taxed for Medicare.

Biden is leading the charge to pass a $3.5 trillion bill that would help fund child care, education and health care. In order to help pay for the cost of the massive legislation, Biden's plan calls for targeting tax avoidance while raising taxes on people in high-income brackets who Biden claims don't "pay their fair share."

A draft of the bill includes a provision that would close loopholes similar to the one Biden used, though the report indicates that Biden would still owe taxes under the current rules, as well.

The report does not name the president, but it analyzes cases where the IRS won a judgment against taxpayers who improperly exploited the S corporations to avoid the Medicare tax.

But when the Bidens released their tax returns during his presidential campaign, they showed that the couple saved up to $500,000 by avoiding the 3.8% self-employment tax with the S corporations.

"As demonstrated by their effective federal tax rate in 2017 and 2018—which exceeded 33%—the Bidens are committed to ensuring that all Americans pay their fair share," the Biden campaign said in a statement at the time.


Some experts believe that the IRS does not have the resources to investigate all the taxpayers who may abuse S corporations to avoid taxes.

"There are millions — literally millions — of S corporations. So there might be a half a million S corporations that are playing this game," said John Bogdanski, who served as a member of the IRS Commissioner’s Advisory Group. "And the IRS doesn’t have anywhere near enough of a budget to bring a half a million cases every year."
 

20Gauge

Has No Life - Lives on TB
Banks said the report indicated that Biden improperly used "S corporations" while he and first lady Jill Biden raked in over $13 million on speaking fees and book sales in 2017 and 2018, but counted less than $800,000 of it as a salary that could be taxed for Medicare.


I have mentioned this about Biden before. By law, you are required to take a "reasonable" salary based upon the business. The argument here is that 800k for what was done is way too low and should have been closer to 10 million.

This also indicates to me that someone may be trying to pressure the Bidens or actually get them out of office.
 

Griz3752

Retired, practising Curmudgeon
You'd think as POTUS, JB could afford better tax/accounting advice, no?

BUT, any professional Pol probably merits a full IRS Audit, personal, PAC, and any business interest under his/her direct or immediate family control.

Think of it like a mandatory vaxx Joe.

A little prophylaxis for the country as a whole but for once, we the People wouldn't get in the butt.
 

The Hammer

Veteran Member
You'd think as POTUS, JB could afford better tax/accounting advice, no?

BUT, any professional Pol probably merits a full IRS Audit, personal, PAC, and any business interest under his/her direct or immediate family control.

Think of it like a mandatory vaxx Joe.

A little prophylaxis for the country as a whole but for once, we the People wouldn't get in the butt.
Sounds like he got great advice, with the understanding that he, of all people, had no chance of getting caught.

Imagine that, the guy who was VP when the Obamacare tax was created to make the rich pay their fair share, not paying his fair share.

But then, he's just old Middle Class Lunch Pail Joe, riding Amtrak to work everyday wearing the same suit because that's all he can afford...
 

Kathy in FL

TB Fanatic
You'd think as POTUS, JB could afford better tax/accounting advice, no?

BUT, any professional Pol probably merits a full IRS Audit, personal, PAC, and any business interest under his/her direct or immediate family control.

Think of it like a mandatory vaxx Joe.

A little prophylaxis for the country as a whole but for once, we the People wouldn't get in the butt.
THIS!!
 

Griz3752

Retired, practising Curmudgeon
Sounds like he got great advice, with the understanding that he, of all people, had no chance of getting caught.

Imagine that, the guy who was VP when the Obamacare tax was created to make the rich pay their fair share, not paying his fair share.

But then, he's just old Middle Class Lunch Pail Joe, riding Amtrak to work everyday wearing the same suit because that's all he can afford...
His Persona Scam, as you detailed, has started to fall apart, finally.

I know I rant on this but, out of all the considerable issues America faces, professional politicians ranks right up there.
If limiting length of service for the Chief Executive makes sense (and it does in my eyes) then why not limit the rest as well? The Elected at any level. SCOTUS or any other senior court, appointed or elected.

Too late to do now, as those who need limiting would be the ones debating and deciding the issue.

PRIME FODDER for a referendum item if I ever saw one. Failing that, perhaps a true Apocalyptic event may be the only alternative.
 
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20Gauge

Has No Life - Lives on TB
You'd think as POTUS, JB could afford better tax/accounting advice, no?

BUT, any professional Pol probably merits a full IRS Audit, personal, PAC, and any business interest under his/her direct or immediate family control.

Think of it like a mandatory vaxx Joe.

A little prophylaxis for the country as a whole but for once, we the People wouldn't get in the butt.
That actually was most likely the advice. There is a great deal of debate as to what is considered as "reasonable" wages. If his person could make an argument, then they would go for it.
 

Griz3752

Retired, practising Curmudgeon
That actually was most likely the advice. There is a great deal of debate as to what is considered as "reasonable" wages. If his person could make an argument, then they would go for it.
terrifying to think POTUS, once the 'poorest guy in the senate', would think that was a reasonable choice.
 

20Gauge

Has No Life - Lives on TB
terrifying to think POTUS, once the 'poorest guy in the senate', would think that was a reasonable choice.
Facts and Circumstances is what the IRS is supposed to judge upon......

1) Fact=== He is the PRESIDENT
2) Fact=== If in doubt as to his ability to claim the reasonable salary, please see item 1)
3) Fact === We can not screw with the IRS like he can.
 

Tripod

Veteran Member
More than likely nothing will happen. But by chance he does have to pay it won't be a big deal because he won' be using his own money.
Mike
 

Griz3752

Retired, practising Curmudgeon
Facts and Circumstances is what the IRS is supposed to judge upon......

1) Fact=== He is the PRESIDENT
2) Fact=== If in doubt as to his ability to claim the reasonable salary, please see item 1)
3) Fact === We can not screw with the IRS like he can.
Given your listed facts are probably the truth, that's still a condemnation of the current system.
 
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